BofA posts $1 billion loss amid consumer credit woes

By IBT Staff Reporter On 10/16/09 AT 9:40 AM

Bank of America Corp posted its second quarterly loss in less than a year as it suffered from consumer credit losses.

The nation's largest bank reported a net loss of $1 billion, or 26 cents per share, for third quarter, compared with net income of $1.18 billion, or 15 cents per share, in the same period last year at the height of the financial crisis.

Bank of America's latest quarterly results come as U.S. consumers, who compromise roughly 60 percent of the bank's loan portfolio -- from home mortgages to credit cards -- are showing signs of continued weakness and an inability to repay debt.

The bank's Merrill Lynch unit made a positive contribution in the latest quarter. Bank of America said the unit boosted its overall results.